Gold seems to have stalled the previous day's retracement slide from a two-month high and is on track to post gains for the second successive week. FXStreet’s Haresh Menghani believes that the recent move up could reach the $1,860 level.
Any pullback towards $1,832-$1,830 seen as a buying opportunity
“The overnight break through the $1,830-$1,832 resistance zone might have already set the stage for additional gains. Hence, a subsequent strength towards testing a downward-sloping trend-line extending from June 2021 swing high, currently around the $1,860 region, remains a distinct possibility.”
“Any pullback towards the $1,832-$1,830 resistance breakpoint might now be seen as a buying opportunity. A convincing break below might prompt some technical selling and accelerate the fall towards the $1,812 horizontal zone. The next relevant support is pegged near the very important 200-day SMA, currently around the $1,804 region, ahead of the $1,800 round figure.”
“Failure to defend an upward sloping trend-line extending from August 2021 swing low, currently around the $1,790 region will negate the near-term positive bias and turn gold prices vulnerable.”
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